Burke v. Harkins

146 A. 94, 296 Pa. 414, 1929 Pa. LEXIS 533
CourtSupreme Court of Pennsylvania
DecidedFebruary 5, 1929
DocketAppeal, 38
StatusPublished
Cited by7 cases

This text of 146 A. 94 (Burke v. Harkins) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burke v. Harkins, 146 A. 94, 296 Pa. 414, 1929 Pa. LEXIS 533 (Pa. 1929).

Opinion

Opinion by

Mr. Justice Sadler,

Martin Burke was the owner of valuable real estate in the City of Pittsburgh, subject to certain liens. Executions were issued and the properties sold in the fall of 1914 to one Callahan. Efforts were made to preserve the interests of Martin, and an arrangement was perfected through Thomas Burke, Jr., a nephew and employee, with one Kaufmann, by which the ownership of the sheriff’s vendee became vested in the latter, subject to an agreement by the terms of which the title was to be re-transferred upon the performance of certain conditions. As a result of the understanding reached, Callahan deeded one tract directly to Kaufmann, and two tracts to Thomas, who in turn conveyed to the same person on February 15, 1915. The cash consideration of $22,500 *417 required was advanced by Kaufmann, who drew the necessary cheeks to Thomas, endorsed in turn to Callahan, and the former paid in addition $137.45, which Kaufmann loaned him at the time, though subsequently reimbursed.

By the terms of the contract it was provided that if the sum loaned by Kaufmann, with compound interest, plus a bonus of $4,000 for his service, be repaid within two and one-half years, — a time subsequently extended by the parties, — 'from rentals, or the purchase price of any of the buildings deeded to him, a reconveyance should be made to Thomas Burke, Jr., who is the complainant in the present proceeding. The arrangement to carry through the transaction in the name of Thomas was made because of the then financial difficulties in which Martin found himself, his ownership having been divested by the sheriff’s sale for a price much less than the real worth. In March, 1915, Martin was declared a bankrupt, and in the schedule filed the land sold by the sheriff was referred to, but stated as of no value, since the record title had passed to the sheriff’s vendee, and through him to Kaufmann. Later, the interest in the license and liquor business, conducted in one of the properties here involved, was purchased from the receiver by Thomas.

From 1915 to 1919 the buildings were handled by the Kaufmann Realty Company, of which Kaufmann and his brother were at the time joint owners, but thereafter the former acquired .the entire interest. The real estate firm collected the rents, and paid maintenance charges, including taxes, until a sale of one of the houses was effected. As a result a fund came into Kaufmann’s hands in excess of the amount he had agreed to accept under the terms of the Burke agreement, which required, in such case, a reconveyance. On October 1, 1919, the holder of the legal title, and his wife, executed a deed for the remaining land, now in question, though the same was not acknowledged until the 22d. An adjustment *418 was then made in the presence of Martin and Thomas Burke, Jr., and a check for $11,395.03, representing the balance then due by Kaufmann was made out to the order of Thomas, immediately endorsed to Martin, who deposited it to his individual account. The deed for the unsold properties was at the time signed, sealed and turned over. It was later recorded, and a legal presumption of actual delivery to the grantee named therein followed: Kohn v. Burke, 294 Pa. 282. Thereafter the realty company collected the rentals, its books showing this to be on account of Martin Burke, and all of the checks drawn, except the first, were made to his order, delivered to and cashed by him. He made the leases to tenants, paid for all repairs, and, in so far as the testimony shows, satisfied the tax claims as they became due. At no time, until this bill was filed more than four years after Martin’s death, did Thomas claim any ownership of the property involved.

On January 14, 1923, Martin Burke was murdered. The deed for the land, in which he was named as grantee, was found in his safe with othpr personal papers, and shortly thereafter recorded. In the same month Thomas applied for a license to conduct a liquor business in the building, swearing the owner was Martin Burke. It was not until May 16,1927, that he asserted the title to be in himself, and filed this bill making such claim, in which the heirs-at-law of Martin, except complainant’s mother, brothers and sisters, who were joined with him as plaintiffs in the proceeding, were named as defendants. His demand was based on the allegation that the deed from Kaufmann had in fact been made to him as grantee, and that his uncle surreptitiously secured possession of the paper, thereafter changing the name of the grantee so as to read “Martin.” The court was asked to direct that the conveyance be reformed to accord with the true facts, and defendants be restrained from asserting any rights in the property. Answers were filed denying the above averments, and the case *419 was heard by a chancellor, who carefully considered all of the testimony submitted, later entering a decree nisi dismissing the bill. Exceptions filed were overruled by the court in banc, and from the final order this appeal was taken. The many assignments of error submitted here are directed to the admission of testimony to show the circumstances attending the parties, and the credibility of the witnesses called by plaintiff, and the findings of fact based thereon, as well as to the conclusions of law reached.

We deem it unnecessary to consider the complaints separately and in detail,5 as an examination of the record shows, beyond question, that a proper determination was reached. It may first be observed that the claim of plaintiff was based on alleged fraud of Martin Burke in causing the erasure of the name of Thomas as grantee in the Kaufmann deed, and substituting his own therefor. Where fraudulent conduct is alleged, as here set forth, the door is opened wide for the production of evidence to determine the true situation, and testimony is freely admitted explanatory of the transaction: Smith v. Smith, 294 Pa. 347. The findings of fact of the chancellor are controlling on us as if determined by a jury (Myers v. Ohio-Penn Gas & Oil Co., 294 Pa. 212), though, of course, there must be competent evidence to support them: Hamilton v. Fay, 263 Pa. 175. In determining this question, it must be remembered that the witnesses were present before the trial judge, and the credibility of their testimony is a matter on which he is best qualified to pass. In this case, the claim of plaintiff was dependent upon the statements of two persons. One was Kaufmann, whose own books and conduct justified the chancellor’s conclusion that he either deliberately testified falsely, or was unintentionally in error. The other was Weil, an attorney who had acted for both Thomas and Martin Burke, presenting a large claim for services against the estate of the latter, and who had been disbarred for misconduct by both the Common *420 Pleas and Orphans’ Court of Allegheny County. His evidence was found to be unworthy of credence, as to the material matters at issue, in view of the facts made to appear.

The first of these witnesses referred to testified that the name of Thomas Burke was written in the deed when executed, and handed to one or the other of the parties in the presence of both.

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Bluebook (online)
146 A. 94, 296 Pa. 414, 1929 Pa. LEXIS 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burke-v-harkins-pa-1929.